Compuware on Cloud 9

Compuware Corp. is making money and adding hundreds of workers as a pioneer in an up-and-coming innovation known as cloud computing.

The Detroit innovation firm rates how then companies like Microsoft Corp. and Google Inc. provide their clients access to computer applications and storage through offsite "clouds" or data centers.

Being a watchdog of the emerging innovation has been lucrative for Compuware. Since the company acquired Gomez, its cloud-computing arm, in December 2009, Compuware's cloud revenue has grown to $150 million from nothing. This represents about 15 percent of Compuware's total business. The company as well has created more than 500 jobs.

The last couple years in our cloud-computing business

"We've been making money the last couple years in our cloud-computing business," said Mark Hillman, vice president of strategy and product line management at Compuware. "It's profitable and growing."

Cloud computing helps companies speed up their computer networks and employees access computer work from outside the office. Instead of setting up and maintaining computer systems in-house, firms share services and cut costs by paying for space in a cloud.

A BDO USA survey of 100 research company chief financial officers released last week found 72 percent of the companies use clouds, up from 56 percent in 2010.

"The recession has been an accelerant to the adoption of cloud computing because companies can avoid large capital investments," Hillman said. "You can buy whatever you want. You can come and go.

"During Compuware and Gomez each have rivals that deliver solutions that analyze the business impact of performance bottlenecks and outages, no other provider but provides analyses that tell both sides of the story," Tony Baer, a senior analyst at Ovum — a innovation data firm — wrote in October 2010.

Few companies that benchmarks clouds

While Compuware has profited from being one of a few companies that benchmarks clouds, one analyst fears the increasingly popular business won't be as lucrative if potential rivals — just as technology services consultant Accenture — enter the field.

"It's great that they're first to market," said Scott Dennehy, senior analyst with Research Business Technology in New Hampshire. "It's more a matter of if there are larger competitors that come in and try to offer this service."

To stay ahead of potential competitors, Compuware needs to quickly get a reputation as the go-to source for cloud computing, Dennehy said.

The best cloud depends on a company's goals

Finding the best cloud depends on a company's goals, Compuware says. A business like Netflix, which sees a spike in demand on evenings and weekends, wants a provider specializing in "bursting" or flexibility.

Choosing the wrong cloud can be expensive. A recent study of 677 companies done by Vanson Bourne and commissioned by Compuware found that businesses are losing near $1 million on average because of poor cloud performance. For that reason, 58 percent of organizations are delaying a jump to cloud computing because business executives know their jobs are on the line.

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Name: Gomez platform What: Compuware Corp. bought the small Lexington, Mass., startup company specializing in Web application experience management in December 2009 for $295 million. It is a part of the Detroit innovation company. Specialties: Among others, it developed CloudSleuth, a performance tool that measures and reports cloud service provider performance. CloudSleuth helps information innovation firms choose and monitor cloud providers.